The first phase of the project is expected to start
producing power late this year and once fully operational it
will supply 15 percent of Cap’s energy needs, the companies said
today in a statement. SunEdison is based in Belmont, California.

Solar developers are seeking to convince mines in the sunny
northern region that their technology is cheaper than burning
fossil fuels, Jenny Chase, an analyst at Bloomberg New Energy
Finance’s Zurich office, said today in a telephone interview. A
leveling out in the price of solar panels after a sharp 5-year
decline may be prompting some businesses to invest now.

“There was lots of interest but not many deals
happening,” Chase said. “Chile companies were naturally
suspicious. That’s changing now. This first big project may
start off a flood of new deals.”

Mining companies may have been holding off on signing
contracts as a supply glut drove prices of solar systems down,
Chase said. Prices have more than halved to $1.55 a watt this
year from 2010, and look to remain around that level.

The plant will include equipment provided by SunEdison that
allows the panels to track the sun’s movement, according to the
statement.

Other mines in Chile developing or generating solar power
include Antofagasta Plc, Cia. Minera Dona Ines de Collahuasi and
Corp. Nacional del Cobre de Chile. None of the projects are
bigger than 35 megawatts.